If your organization has ever hired a development director or major gift officer hoping for a big leap in fundraising revenue—only to feel underwhelmed months later—you’re not alone. And you’re not broken.
But you might be misaligned.
At Raise the Bar Consulting, we’ve supported hundreds of nonprofit leaders through these decisions, and we’ve seen a clear pattern: Hiring alone isn’t enough.
And a new national study backs this up.
The Missing Middle Part Four report, produced by Sea Change Strategies and Edge Research, looked at nearly 6,000 donors giving $1,000–$10,000 annually. These donors are often responsible for 30% or more of individual donor revenue, yet they remain under-segmented and under-strategized.
Here’s what you need to know:
- Only 10% of midlevel donors say they plan to increase their giving this year.
- Only 13% have ever given $10,000 or more.
- 89% say they’ll give again. That’s incredibly high retention potential—but not growth by default.
If your strategy is built around “upgrading” these donors, you might be setting your team up for frustration. Even more importantly: not all $5,000 donors are the same.
The study identified 3 key donor archetypes:
- All Business: Want minimal contact. Renew annually. Highly focused on overhead.
- Engagement Seekers: Crave updates, connection, visibility, and will give more if stewarded well.
- Hands-On Donors: Often already engaged—volunteering, serving on boards, and giving deeply where they’re already connected.
If you treat them all the same, you lose traction.If you segment and meet them where they are, you build loyalty and unlock real potential. So… what should you do before hiring?
- Look at your file.
- Segment your donors by annual giving levels.
- Identify mid-level donors ($1,000–$9,999) and major donors ($10,000+).
- Assign relationship managers and run predictive analytics.
- Tailor messaging and stakeholder communications by donor type.
Then, and only then, decide whether hiring a new staff person will yield ROI—and if so, determine for which fundraising function (annual fund, major gifts, corporate and foundation giving, etc.).
Real Talk: The Economics of Fundraising Hires
Many leaders and boards expect a new staff member to “pay for themselves” by raising new dollars—but this rarely plays out in practice. Here’s why:
- In good economic times, fundraising growth averages 5% year-over-year. For orgs with budgets under $2M, this often nets less than $100K once you subtract earned and restricted income.
- In challenging times, flat is the new up—breaking even is a win.
According to national research:
- Donor retention hovers around 40% and hasn’t meaningfully improved in decades.
- Acquisition is a loss leader—and takes time to yield long-term returns.
- Re-engaging a lapsed donor (48+ months) takes 500% more effort than acquiring a new one.
- When you exclude mega-donor giving, overall charitable giving declined in 2024 compared to 2023.
The best fundraising strategies blend donor renewal with strategic acquisition using multichannel engagement.
Hiring Isn’t Always the First—or Best—Next Step
Before hiring a development director, major gift officer, or any other position, ask:
- What type of work will lead to the most success?
- Do we have the volume of leads to justify the role?
For example, a major gifts officer typically needs 150+ qualified $10K+ prospects to succeed. Without that list, the role may not yield the intended ROI. You do need to invest in order to grow. But sometimes that investment is better spent on strategy, segmentation, or external support before expanding your team.
Ready to turn insight into action? Want hands-on help building the right strategy and team to support your fundraising growth? Book a FREE 20-minute consult to explore how we can partner with you—whether through strategic advising or ongoing retainer support—to help you strengthen your team and maximize your results.
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